January 22, 2010

Obama proposes more regulation of US banks

BBC Report today that President Obama is planning new regulations of the US banking sector.
US President Barack Obama has proposed significant new curbs on the activities of banks to try to prevent future financial crises.  The plans - the most far-reaching yet -include limits to the size of banks and restrictions on riskier trading.

While the greed of certain fringe financiers may have got the world into the financial mess it found itself in last year.  It is by no means clear that ongoing extension of state controls in the solution.  Arguably if those companies that got themselves into difficulty had been allowed to go under the market would be now have cleared out the companies that acted unwisely with depositers funds.

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